JSE boss disputes clearance claim
The JSE has challenged Sagarmatha’s claim that the Companies and Intellectual Properties Commission (CIPC) had cleared it of noncompliance with the Companies Act. On Thursday, Andre Visser, head of listings at the JSE, said the bourse had noted Sagarmatha’s comments, but disagreed with its analysis of the critical issues. Visser said the matter had been brought to the JSE’s attention by the CIPC.
The JSE has challenged Sagarmatha’s claim that the Companies and Intellectual Properties Commission (CIPC) had cleared it of noncompliance with the Companies Act.
On Thursday Andre Visser, head of listings at the JSE, said the bourse had noted Sagarmatha’s comments but disagreed with its analysis of the critical issues. Visser said the matter had been brought to the JSE’s attention by the CIPC.
“In reaching our conclusions we made relevant inquiries and received specific confirmations from Sagarmatha’s sponsor and officials at CIPC who brought the matter to our attention,” he said.
CIPC commissioner Rory Vollmer did not respond to a request for clarification from Business Day.
The controversial circumstances around the last-minute withdrawal of the listing raises concerns not only about the JSE but also about Sagarmatha’s sponsors and transaction advisers. While a number of analysts have criticised the JSE for not picking up the noncompliance before it granted approval, the JSE’s position is that when a company applies for a listing it confirms that it has met all of the listing obligations.
It assumes the sponsoring broker has verified all the claims made in the prelisting statement. Sagarmatha’s sponsor was Vunani Capital. Its accounting firm was BDO and PSG Wealth provided asset management and financial services.
Sagarmatha said in a statement on Wednesday night that it had received indicative commitments of R4bn but that it was now legally bound not to accept applications from its committed investors.
“Sagarmatha Technologies was hopeful it could resolve this issue with the regulator and requested the extension of a new listing date. However, the JSE has requested the company make provision for a fresh listing application,” the statement said.
Sagarmatha said it was now considering a number of options, including selling its four largest businesses to international investors.